Fr

ee

Oracle's E-Business Suite Human Capital Management

enables organizations to architect a global foundation for
HR data and improved business processes.
The book starts by introducing Oracle Application
E-Business Suite, its architecture, and how to set up the
preliminary components such as roles, groups, and profile
options. As you progress through the chapters, you'll learn
to define common data from an enterprise perspective,
such as the unique structures for jobs, positions, job
groups, and other business entities. As we move from
learning the core HR structures, you'll learn to implement
people management concepts such as maintaining
personal information, identifying assignments, managing
assignments of personnel, changing assignments, and
terminating an assignment or employee. By the end of this
book, you will have a thorough knowledge of implementing
a fully functional HR system based on strategic business
needs, along with a detailed understanding of the key
functions and benefits of Oracle HCM.

Who this book is written for

Learn about the architecture of Oracle HRMS

Define value sets, key flexfields, and

descriptive flexfields

Configure the payroll and provide knowledge

of setting up payroll earnings and deductions
in an organization

Identify work structure components and

their usage

Create business groups, locations,

and organizations

Define the unique structure of business

entities such as jobs, positions, and grades

$ 69.99 US
45.99 UK

professional expertise distilled

P U B L I S H I N G

Pravin S. Ingawale

If you are a developer or functional consultant of Oracle's

E-Business Suite HRMS who wants to learn the logical
flow of the processes involved in human resources and
where Oracle HCM fits into the overall enterprise structure,
then this book is for you. Basic knowledge of Oracle's
E-Business Suite components is essential.

What you will learn from this book

Oracle E-Business Suite R12.x HRMS A Functionality Guide

Oracle E-Business Suite R12.x

HRMS A Functionality Guide

Sa

pl
e

P r o f e s s i o n a l

E x p e r t i s e

D i s t i l l e d

Oracle E-Business Suite R12.x

HRMS A Functionality Guide
Design, implement, and build an entire end-to-end HR
management infrastructure with Oracle E-Business Suite

Prices do not include

local sales tax or VAT
where applicable

Visit www.PacktPub.com for books, eBooks,

code, downloads, and PacktLib.

Pravin S. Ingawale

professional expertise distilled

P U B L I S H I N G

In this package, you will find:

The author biography

A preview chapter from the book, Chapter 5 'Job, Position, Pay Grade,
and Payroll'
A synopsis of the books content
More information on Oracle E-Business Suite R12.x
HRMS A Functionality Guide

About the Author

Pravin S. Ingawale is currently working as an Oracle apps HR/Payroll

techno-functional consultant and has more than 8 years of experience. He has

been involved in end-to-end implementations, more than two of which involved
modules such as Core HRMS, Self Service, Payroll, and so on.
His role included conducting CRP with end users, gathering requirements,
building the best solution, demonstrating the solution to end users, conducting
UAT, and performing a successful Go Live. He is also engaged in post Go Live
support, if required.

Preface
This book is a functional guide for Oracle Application HRMS R12. This guide will
help implementers to design, implement, and deliver an Oracle apps HRMS system
for customers.

What this book covers

Chapter 1, Introduction to Oracle Applications E-Business Suite, introduces Oracle
EBS and describes the architecture of Oracle apps. Along with the architecture,
it will cover various modules that are part of the Oracle HRMS family. In addition
to this, it will cover the Multi Org Concept in Oracle Application and an overview
of multiple organization structure in HRMS, along with practical examples.
Chapter 2, Oracle Application System Administration, shows you how to create application
users, responsibilities, custom menus, request groups, and data groups. You will also
learn to create concurrent programs and to attach them to responsibility.
Chapter 3, Fundamentals of Flexfields / Value Sets, explains the basics of flexfields.
You will learn to define values sets, key flexfields, and descriptive flexfields.
Chapter 4, Business Group, Locations, and Organizations, covers the concept of work
structures in HRMS. You will learn the basics of business groups, organizations,
and locations in HRMS.
Chapter 5, Job, Position, Pay Grade, and Payroll, deals with the concept of jobs and
positions. It defines a job, position and position hierarchy. It explains the concept
of people group and payroll terminologies, such as payment methods, salary basis,
and payroll definition.
Chapter 6, Entering People Information, talks about creating a new employee and
entering employee data and additional data using DFF and KFF. You will also
learn the concept of person type.

Preface

Chapter 7, Entering Assignment Information, teaches you about entering assignment

information, in which you will study various components of assignments. You will
also learn about entering assignment-related information. Then, you will also learn
about assignment statuses in Oracle HRMS and entering salary for employees.
Chapter 8, Terminations, teaches you about terminating an employee. You will also
learn how to reverse terminate an employee. We will also see how to terminate an
assignment rather than an employee.
Chapter 9, Absence Management, covers the basics of absence management in Oracle.
You will study the configuration of absences in which you will learn about defining
absence types, elements, and so on. You will also learn about entering absences by HR
and employees. We will see the important concept of calculation of absence duration.

Chapter 5

Job, Position, Pay Grade,

and Payroll
In the previous chapter, you learned the concepts of work structures in Oracle
Apps HRMS. You also learned how to define a business group, organization and
location, and so on. These learnings were more related to the organizational aspect.
We will drill down more in this chapter to see actually what entities are involved
in an organization. In this chapter, you will also learn about the concepts of jobs,
position, and some fundamental concepts of payroll.

Job and position overview

The work structure provided by Oracle HRMS is quite flexible. It is used to represent
the ongoing responsibilities and functions that an enterprise must carry out in order
to meet its goals.
Jobs and position are important parts of your enterprise. They facilitate you to
differentiate between duty and the person who performs those duties.
Jobs in Oracle HRMS are used to represent the task an employee performs in your
enterprise and the necessary skills. An example can be shown as follows:

Manager

Developer

Consultant

Accountant

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Job, Position, Pay Grade, and Payroll

Position represents specific details of the job, for example:

Assistant manager of operations

Senior SQL developer

Senior Oracle HRMS consultant

Payroll accountant

When you actually start implementing Oracle HRMS, you need to decide whether
to use jobs, position, or both in your organization. Both these entities are non
mandatory for an employee. An employee can have either of these, both of these,
or neither of these.
Your organization will generally fall into one of three general categories:

Rule-based

Project-based

Hybrid

For rule-based enterprises such as governments and schools, you control the
employment, roles, and payment-related information according to the strict
policies and procedures. In these organization types, roles are significant rather
than individual. In rule-based organizations, where roles continue to exist after
an individual leaves the organization, positions are used.
An IT company is an example of a project-based enterprise. In IT companies,
employees are allocated to projects on a regular basis. Here, you have to manage
people and their skill sets, instead of fixed roles. Therefore, in project-based
organizations, where the role ends when an employee completes a particular
project, typically, jobs are used.
A manufacturing company or a corporate is an example of a hybrid enterprise.
In this type of company, people are assigned to fixed roles and others to more
than one project. Hence, a hybrid enterprise uses both jobs and positions.
Therefore, depending on your requirements, you to have to decide whether to
use jobs or positions.
Now, let's see how to define jobs and positions.

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Chapter 5

Defining a job
Until now, you have learned the concept of using jobs in your organization. In this
section, you will learn to define a job in Oracle HRMS.
Navigate to US HRMS Manager | Work Structures | Job | Description.

In the screenshot, you can see the form that is used to define a job in your
organization or, you can say, in your business group. You can use this window
to search for a particular job or to create a new job. Click on the New button to
create a new job.
Before creating a job you can create a job group. Oracle HRMS organizes jobs in
job groups. For each business group, there is a default job group; however, you can
define additional groups if you want to. Some statutory reports do require job group
as their parameter. Otherwise, there is no such significance of using a job group.

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Job, Position, Pay Grade, and Payroll

Creating a job group

To define a job group, navigate to US HRMS Manager | Work Structures | Job |
Job Group.

To create a job group, here are the steps:

1. Enter a name for the job group.
2. Select the flexfield structure. This will decide the fields that are displayed in
the Job Groups window when this job group is chosen. We have seen how
to define the Key flexfield in Chapter 3, Fundamental of Flexfields / Value Sets,
under the Key flexfields section.
3. Select a business group if required.
4. Check the Master Job Group checkbox if this is to be the master job group.
This is used in Oracle Projects. The jobs within the master job group can have
jobs from other job groups mapped onto them using Oracle projects.
5.

Save your changes.

As we have now created a Job Group, we will use the job group to create a job.

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Chapter 5

Creating a job
To define a job, navigate to US HRMS Manager | Work Structures | Job |
Description.
Now, follow these steps to define a job:
1. Enter a date of your choice.
2. Select the required job group.
3. Enter a name for the job. This name should be unique. The name will have
segments depending upon your definition of Job key flex.
4. To match employees to roles, which included qualification or valid
experience, use the Requirement button to enter a job requirement.
5. The Valid Grades button is used to enter the grades to which job holders can
be assigned.
In our case, we have created a job name Manager.Job 002 from 01-Jan-2014.

Thus, we have seen how to define a job. This job can be assigned to an employee in
assignment information.

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Job, Position, Pay Grade, and Payroll

Defining position
As seen earlier, the concept of position in an organization. In this section, we will see
how to define a position in an organization. Navigate to US HRMS Manager | Work
Structures | Position | Description.

Follow these steps to define a position:

1. First, we need to set the effective date from when we want to create a
position.
2. Then, enter the name of the position in the Date Effective Name field in
the Position Details tab. This name must be unique or it will give you an
appropriate error.
3. The next step is to enter the position type; there are four options for this field.
These are None, Pooled, Shared, and Single incumbent.
Single incumbent means at a given point of time only one employee is allowed to hold
that position in the organization.
In case of Shared, there can be more than one incumbent. This value will be as entered
in the FTE field.
Pooled (public sector only) means the position is loosely defined, so rules about FTE
and hours are not enforced by the system.
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Chapter 5

1. Select the None option in case you do not need to record position types.
2. In case the position is permanent in your organization. The example for
such a case can be CEO.
3. Seasonal, as the name suggests, is used for one season each year (such as
a summer teacher), so select the Seasonal checkbox for such cases.
4. As position can be for an organization or a job, enter the appropriate
organization and job in the respective fields.
5. Enter the proposed end dates in case you know that the position will be
transferred to another organization or job in the future.
6. Enter a hiring status.
7. A position can have a location. If not entered, it will be defaulted to the
location of the organization.
8. Select a status for the position. This is an optional field.
The Hiring Information tab is used to enter further information regarding the
position created. Enter the Head Count and the FTE information. Furthermore,
enter the probation period, payroll name, grade, and salary basis (this information
will be automatically populated on the person's assignment form when the position
is assigned to a person).
In the Work Terms tab, enter the working hours and frequency used by this position.
Also, enter the normal start and end time. In addition, you can also enter the
supervisor, relief, and successor for the position.

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Job, Position, Pay Grade, and Payroll

Hence, we have seen how to define a position. There are still many fields used in
defining a position, but they are not as significant as the remaining fields that we
have seen before.
Now that you learned how to define jobs and position in Oracle apps HRMS, let's see
the concept of position hierarchy.
Your organization may route transactions for data entry and approval using different
chains of authority. One such chain of authority you can use is position hierarchy.
To define position hierarchy, navigate to US HRMS Manager | Work Structures |
Position | Hierarchy:

Enter the primary name of the position hierarchy and enter the version number and
start date of the hierarchy.
Query the top position name into the position block. The holder field will display the
employee name holding this position along with worker type and employee number.
Now in the subordinate block, enter the immediate subordinate for the top position.
To add a position below this added subordinate position, please check the checkbox.
To create a new version of an existing hierarchy, follow the same steps as creating a
position hierarchy. Use the down arrow in the version field to move through existing
versions of the hierarchy until you reach a version number where there is no data.
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Chapter 5

To copy an existing hierarchy, you have to query the name and number of the new
hierarchy and click on the Copy Hierarchy button. This is then followed by selecting
the name and the version number of the hierarchy you want to copy.
To change the position of the hierarchy, there are three options. They are as follows:

By adding a new position to the existing one, you have to query the hierarchy
and the version you want to change. Then you need to query the parent
position for the one you want to add, which is followed by selecting the
new position in the Subordinates block.

Change the top position in an existing hierarchy. Again, you have to query
the hierarchy and version you want to change, then you need to query the
new top position, and this is followed by selecting the previous top position
in the subordinates block.

You can also move a position and all of its subordinates within a hierarchy.
To move a position, you need to query the hierarchy and the version you
want to change, and then query the new parent position for the one you
want to move. This is followed by selecting the position to move in the
subordinates block.

In order to delete a positional hierarchy, one must begin by deleting the lowest level
and working their way towards the top level.
You cannot delete a hierarchy if the other version exists or
if any security profile uses it.

Thus, we have seen details about the position hierarchy.

In the next section, we will slowly move towards fundamental concepts involved in
the Oracle payroll. Before that, let's see the most used entity in Oracle HRMS, that is,
People Group.

People Group in Oracle HRMS

People Group is a Key Flexfield (KFF) in HRMS such as job, grade, and position.
Oracle provides People Group KFF for several purposes. If an organization wants
to group certain sets of people based on certain parameters such as benefit-eligible
types, then you can use the People Group KFF.
People Group is mostly used to store benefit eligibility; however, it can serve many
purposes in your implementation. It is one of the fields in the assignment form.

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Job, Position, Pay Grade, and Payroll

In Chapter 3, Fundamental of Flexfields / Value Sets, we have seen how to define KFF.
People Group KFF segments can also be defined using the same detail mentioned in
that chapter. All KFFs hold information in segments. You can configure a maximum
of 30 segments.
The most important use of People Group is to link benefits to group flexfield
segments. This will ensure that only employees within groups are eligible for that
benefit.
Let me explain this with an example. Let's say your organization wants to pay a car
allowance to a few eligible employees. You open a segment in People Group KFF
to store this eligibility. This segment will have the value Yes or No. This value can
further be used in payroll to pay car allowance for an employee.
Thus we can configure People Group in our business group to a maximum of 30
segments to store data for employees.
Now in the next section, we will see how to define a payroll for our business group.

Defining payroll
A payroll is a set of employees whose pay you process with a single frequency, for
example, weekly, monthly, or semimonthly. You can define as many payrolls as you
want to meet the requirements of your company. For example, your company has
two different types of employee, one of which is paid monthly, and others are paid
weekly; then you can define two payrolls for your organization. You can then place
those employees on a payroll by assigning him or her to the payroll.
As per the HRMS design, every employee assignment must have a payroll attached
to it though this field is nonmandatory.
The entity payroll tells the system about the payroll frequency/cycles, the valid
payment methods, and the check dates to which the employee is entitled. Employees
which fall into the same payroll share the same payroll frequency and pay dates.
Payroll has only one pay frequency, hence you must define at least one payroll for
each pay frequency you use. The following table shows the valid period types for
pay frequency:

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Chapter 5

Before defining a payroll, you need to have an additional setup. This additional
setup is the setting up of a payment method for your organization.
Every organization has rules for its payment. Some organizations pay by check,
some by deposits directly to your banks, and some even pay by cash. The method
of payment that an organization follows in order to pay its employees is known as
the Organizational Payment method.
The employee in your organization can select the method by which they would like
to be paid every pay period. Some employees may opt to get their salaries in their
defined bank account, some might want to have a check, or some may like to have
half by check and half cash.
Each payroll binds together a set of valid payment methods. Therefore, the available
options can be specific to each payroll.
The payment methods differ with the types of banks as well. For example, if your
Company deals with three different banks, then it will require three different payment
methods defined for each of the banks it deals with, even though all of the payment
methods will be of the same type.

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Job, Position, Pay Grade, and Payroll

To define the payment method, navigate to US HRMS Manager | Payroll |

Payment Methods:

Enter the name of the payment method, enter the type such as cash, check, and so
on. Enter currency, check third-party payment, if the payment is of the third-party
payment type, and enter the bank details. The bank details will have information
about the account from which the payments come.
Now, as we have defined the payment methods, the next step is to define a payroll.
To define a payroll, navigate to US HRMS Manager | Payroll | Description:

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Chapter 5

So, the payroll definition is the screen where payment dates, check dates,
consolidation set, a default payment method, and so on, are assigned to a payroll.
To create a payroll, follow these steps:
1. Set the effective date from when you want to define payroll. Your effective
date must be on or before the first period start date of the payroll calendar.
2. Enter the name of the payroll.
3. Select the period type. This will tell the frequency of the payroll. The First
Period End Date field is used by the system to determine the payroll dates
(start date and end date).
4. The value in Number of Years will indicate the number of years the payroll
will be effective. If you enter the value as 100, then the payroll will be valid
for the next hundred years from the first period's end date.
5. The check date signifies the days after the end date, the checks will be cut. If
you enter the value in this field as -3 then it means that the check will be cut
3 days before the payroll end date.
6. Enter the scheduled run date, which is an offset as well, is date as of which
the payroll will be run.
7. Enter the cut off date, which represents the date after which no changes
should be made to the payroll data in the application.
8. Enter the pay slip date. On this date, pay slips will be available online in self
service HR to the employees.
9. Enter the payment method. This will be the default payment method of the
payroll. This payment method will be used if an employee has not selected
any preferred payment method in his/her assignment. In most cases, it is
defined as a check.
10. Enter the Suspense Account and Costing information in the Costing
sectioncost allocation KFF is used to define costing segments. If the costing
of a particular payroll or element is not charged to any account, then it gets
added to the defined suspended account.
11. Check the Negative Payment Allowed field to determine whether negative
payments can be done in case the employee's deductions are higher than
earnings.
12. The Multiple Assignments check box tells the system whether to process an
employee if the employee has multiple assignments with different payrolls to
each assignment.

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Job, Position, Pay Grade, and Payroll

13. The Period Dates button will open a new form that will show dates for each
payroll cycle along with the cut off date, check date, and so on. However,
these dates can be changed (overridden) in this screen, in case the dates are
to be changed for a given period.
14. The valid payment methods will list payment methods that the employee
can choose from.
You have now learned about defining a payroll. In the following screenshot, we have
defined a new payroll:

Now let's learn about salary basis in the Oracle payroll.

Salary basis is the duration for which the salary is quoted. There might be different
types of employees in your organization in terms of payment. Some might be getting
paid on an hourly basis, while others might be paid annually. So the salary basis
defines the time span by which the salary is being defined. However, someone being
on an hourly salary does not mean that the employee gets paid every hour, it means
the employee gets paid per hour. If an employee is in an annual salary basis, he/she
might get paid every month/week, based on the calculated salary per pay period.

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Chapter 5

To define salary basis, navigate to US HRMS Manager | Total Compensation |

Basic | Salary Basis:

Enter the name of the salary basis. This can be one of the following options:

Hourly salary: This is paid per hour

Monthly salary: This is paid per month

Annual salary: This is paid per annum

Period salary: This is based on the pay period

Enter the pay annualization factor and enter the factor with which the salary can be
converted to the annual salary. For example, if the salary is monthly, then this field
will be 12, for annual it will be 1, and for hourly it will be 2,080 (52 weeks x 40 hours
each week).
Leave the field blank, if you are opting for period salary basis; an application will be
able to figure this out based on the pay periods.
Enter the salary element in the element name field and enter the name of the input
value that stores the basis. Do not use the pay value as the input value because
Oracle payroll will now be completed does not calculate on the input value, if the
pay value is assigned.

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Job, Position, Pay Grade, and Payroll

The grade rate is the place holder of linking grade to the salary basis. The Grade Rate
Basis range given in the grade rate must relate to a basis. That field gets populated
here. Grade Annualization Factor is a factor of the grade rate based on the grade basis.
Thus, we have seen how to define a salary basis. In the following screenshot, we
have created a new salary basis:

Summary
In this chapter, you learned about the concepts of jobs and positions. You learned how
to define a job and position. Then we covered details about position hierarchy. We also
covered the concept of People Group and came across some terminologies in payroll in
which you learned about payment methods, salary basis, and payroll definition.
In the next chapter, you will learn about people management in Core HR. You will
understand the hiring process and how to hire a person. Then you will learn the
concept of person types in Oracle HRMS and about entering personal information
in the application.

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Get more information Oracle E-Business Suite R12.x HRMS A Functionality

Guide

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